Global Mobile Virtual Network Operator (MVNO) Market: Growth, Trends and Forecast (2018-2023) - Growing Penetration of Mobile Devices is Driving Demand

12/18/2018, 12:06 PM (Source: GlobeNewswire)

Dublin, Dec. 18, 2018 (GLOBE NEWSWIRE) -- The "Global Mobile Virtual Network Operator (MVNO) Market - Segmented by Operational Model (Reseller, Service Operator, and Full MVNO), Subscriber (Business and Consumer), Application, Service and Geography - Growth, Trends and Forecast (2018 - 2023)" report has been added to's offering.

The global revenue of the mobile virtual network operator (MVNO) market was estimated at USD 49.65 billion, in 2017, and is expected to reach USD 74.33 billion, by 2023, witnessing at a projected CAGR of 6.75%, over the forecast period (2018-2023).

There are nearly 1,000 MVNOs, globally, who together account for around 10% of the total mobile users. Major MNOs like T-Mobile and Verizon choose MVNOs to offload the additional capacity in bulk for wholesale prices, which would instead remain unused and help cover the risk of loses.

The need for cheaper service rates is increasing competition among service providers, who are compelled to see MVNOs as one of the options to gain virtual customers. The emergence of M2M (machine-to-machine), cloud, and mobile money, coupled with increased data usage rates, are expected to increase the demand for MVNOs.

Increasing Mobile Network Subscribers and Growing Penetration of Mobile Devices are Driving the Mobile Virtual Network Operator (MVNO) Market

There has been a significant increase in the number of cellular subscribers, globally. This is because of the increasing number of consumers opting for devices that offer connectivity.

One of the major connectivity devices in demand is a smartphone. Smartphones are very important because of the connectivity they provide. The number of smartphones being used internationally is relatively high, as compared to other connectivity devices.

The number of smartphones/mobile devices being sold is increasing, amassing the number of mobile network subscriptions to be high, since connectivity devices cannot perform without subscriptions. According to Zenith's mobile Advertising forecast 2017, the number of smart phone owners is expected to increase by 7% in 2018.

The increasing adoption of connectivity devices and growing penetration of mobile devices are expected to lead to significant increase in the number of mobile network subscribers, in turn, boosting the growth of the global MVNO market.

Reseller Type is Expected to Dominate the Mobile Virtual Network Operator (MVNO) Market

MVNO offers its own value-added services or holds no assets in the partnership with the mobile network operator in the reseller segment. In addition, resellers do not get any ownership of the client, infrastructure, or SIMs.

Resellers do not give the MVNO the capability to fix the cost. They allow MVNOs reap the profits of operating under its own brand. The reseller is answerable for the costs of branding, sales, distribution, and share revenues with the partner MNO. However, service operators can fix the costs, independent of the costs fixed by the MNOs.

Full MVNOs gain profits linked with owning the infrastructure of the network switching. The total profit gained by resellers is estimated to be less than 10%; and the profit gained by service providers is estimated to be nearly 10%-15%. Resellers virtually rely on MNOs for back-office support, thus allowing them to concentrate on branding and distribution sales.

In this competitive environment, service providers are concentrating more on resellers to gain more virtual customers, thus aiding the substantial growth of resellers.

Europe Dominated the Mobile Virtual Network Operator (MVNO) Market in 2017

Europe dominated the global MVNO market, followed by Asia-Pacific and North America in 2017. Latest technological breakthroughs have assisted the advancement of new MVNO services that can make the overall processes more efficient, as well as significantly improve accuracy in various applications.

There have been a series of new product launches, mergers, and acquisitions in Europe, in an attempt to take advantage of this opportunity. The major driver behind investments has been the continuous evolution and application of advanced technologies, to unlock huge volumes, which were previously considered non-commercial.

With this series of investments in the retail, discount, and migrant application segments in Europe, the market in the region is poised to grow substantially during the forecast period.

Developments in the Market

  • November 2017 - Virgin Mobile launched MNVO in Russia, as a part of significant expansion of the firm in Russia.
  • September 2017 - Lebara was acquired by Palmarium, a Switzerland-based private investor. This acquisition was made by Palmarium's subsidiary VIEO.
  • August 2017 - KDDI Mobile agreed to acquire Soracom Inc., one of the leaders in IoT space that combines air connectivity with cloud capabilities to deliver secure communication to optimize IoT and M2M. Soracom Inc., is expected to operate as a consolidated subsidiary of KDDI mobile.
  • February 2017 - Virgin Mobile expanded its reach by launching latest MVNO operations in United Arab Emirates (UAE).

Key Topics Covered

1. Introduction
1.1 Scope of the Study
1.2 Executive Summary

2. Research Approach and Methodology
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Analysis Methodology
2.4 Research Phases

3. Market Insights
3.1 Market Overview
3.2 Industry Attractiveness - Porter's Five Forces Analysis

4. Mobile Virtual Network Operator (MVNO) Market Dynamics
4.1 Introduction to Market Dynamics
4.2 Market Drivers
4.3 Market Restraints

5. Global Mobile Virtual Network Operator (MVNO) Segmentation
5.1 by Operational Model
5.1.1 Reseller
5.1.2 Service Operator
5.1.3 Full MVNO (Mobile Virtual Network Operator)
5.1.4 Others Operational Model
5.2 By Subscriber
5.2.1 Business
5.2.2 Consumer
5.3 By Application
5.3.1 Discount
5.3.2 Cellular M2M (Machine-to-Machine)
5.3.3 Business
5.3.4 Media & Entertainment
5.3.5 Migrant
5.3.6 Retail
5.3.7 Roaming
5.4 By Service
5.5 By Geography
5.5.1 North America
5.5.2 Europe
5.5.3 Asia-Pacific
5.5.4 Latin America
5.5.5 Middle East & Africa

6. Competitive Intelligence - Company Profiles
6.1 KDDI Corporation
6.2 AMERICA MOVIL SAB DE CV (Tracfone Wireless Inc.)
6.3 FreeUP Mobile
6.4 Project FI (Google LLC)
6.5 Tesco PLC (Tesco Mobile Limited)
6.6 Globecomm Systems Inc.
6.7 Lycamobile
6.8 PosteMobile SpA
6.9 1&1 Drillisch AG
6.10 FRiENDi Mobile

7. Investment Analysis

8. Future of the Mobile Virtual Network Operator (MVNO) Market

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